On Tuesday, a slew of US stock indices ended mixed with lofty gains in energy and financials countering a downturn in so-called growth stocks and healthcare, as investors remained fretted over a sharp uptick in inflation indicators that could prompt the US Fed to harness a policy change.
In point of fact, over recent weeks, gains in Wall St.’s major stock indices were largely rangebound with investors’ caution ramping up despite US Fed’s remark that it harboured no plans to taper off monetary support for a rapidly recovering US economy, however, several analysts fretted that a latest rise in US inflation with core PCE (Personal Consumption Expenditure) Index shooting up to 3.1 per cent last month, the highest level since 1992, might enforce the US Federal Reserve to hike rate during second half of the year, capping the gains in US money markets.
Nonetheless, in the day’s marginal gains in the Wall St. were yielded by a boost in crude oil prices, which had lifted S&P 500’s energy sector more that 3 per cent higher, while declines in healthcare were led by a steep downward spiral in Abbott Laboratories, which had lowered its profit forecast for 2021 earlier in the day.
However, an ISM (Institute of Supply Management) survey data published earlier in the day had revealed that the Tempe-based supply management group’s index for US national factory activity stepped up last month, vindicating investors’ optimism of a solid economic rebound, though, a steep shortage of labours and raw materials as cited in the ISM report, had kept a lid on the gains.
Dow inches higher amid signs of solid economic recovery
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow added 0.13 per cent to 34,575.31 and benchmark S&P 500 shed 0.05 per cent to 4,202.04, while tech-heavy Nasdaq dipped 0.09 per cent to 13,754,29.
Meanwhile, referring to an influx of positive energy into the US money markets, a chief global market strategist at Invesco in New York, Kristina Hooper said, “The economy certainly is growing and that's a positive, and again it's a positive for the most cyclical parts of the stock market. ”